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Latin America Investment News on Viva Tropical

El Salvador Commits to Expansion at San Salvador International Airport but Funds Paralyzed by Lack of Law on Concessions

Article Summary:

AviancaTaca and the Government of El Salvador are working together to find a funding solution in order to begin the necessary renovations and expansions at San Salvador International airport. The source of the funding problem lies in that CEPA (Autonomous Executive Port Commission) must allocate the proceeds to the airport to pay the debt of building the Port of La Union, which is paralyzed by the lack of a law on concessions which would define the operation and participation of investors.

Photo Credit: El Salvador

Original Article Text From El Salvador via Google Translate :

Goes after TACA and Options to Renew the Airport

AviancaTaca and the Government of El Salvador are working together to find a solution as soon as possible to take the renovation and expansion of the airport, which now allows the main airline in the region to continue its growth plans in the country.

The chairman of the board of AviancaTaca, Roberto Kriete, said representatives of the State, including the technical secretary of the Presidency, Alexander Segovia, and the president of the Port Authority CEPA, Alberto Arene, are talking to “jointly find a solution. ”

“We all feel that (the restoration and expansion of the airport) has a great sense of urgency … and is an issue of competitiveness of the country,” he said.

In this sense, explained that it is looking for convenience only AviancaTaca, but the modernization of the airport means more work, more jobs, more investment for the country. “What’s good for AviancaTaca is good for El Salvador,” he said.

Kriete said government officials are aware of the damage it has suffered huge infrastructure in recent years by a chronic lack of investment in infrastructure. “That we have no disagreement: both they and we (AviancaTaca) are clear that the airport has been neglected and has not invested what he had to be invested over the years to maintain a first world facilities “he said.

The source of the problem is that CEPA (Autonomous Executive Port Commission) must allocate the proceeds to the airport to pay the debt of building the Port of La Union, who is paralyzed by the lack of a law on concessions that would define its shape operation and participation of investors.

The renovation of the existing terminal requires resurfacing of the runway, replace sleeves approach, air conditioning, remodeling bathrooms and electronic equipment and instruments such as radar approach and navigation issues. “That’s just to maintain current capacity, and that we have no disagreement between AviancaTaca and ECA, we are working with them to support them in the manner they see fit to expedite this process and is given as quickly as possible,” said Kriete.

Expansion
Kriete drew attention in particular on the need for airport expansion, because current conditions do not allow them to continue with its growth plans or upgraded to be the main air terminal in El Salvador.

“In the next ten years we have a development plan that leads to need much more space, more doors, more space for passengers, more sleeves to receive the passengers that come out, more area of ​​migration, more customs area, more baggage area, “he explained.

Kriete said that there is already an expansion master plan prepared by Aéroports de Paris in 2007, which displays an ordered growth over time, it even has areas for industries associated with the work of air carriers, as is the case aeromantenimiento, terminal charge, private flights, including an industrial park and a cluster development in the field of aviation.

Now “we are limited in our growth to contract pilots, flight attendants to contract, to move more planes via the hub of El Salvador, we are artificially limited by the lack of infrastructure, and that is the second phase of the which we have spoken also with strain and the government that the country needs to expand the airport, “said the businessman.

Modalities
In the talks with the President of the Republic, with the technical secretary and the president of ECA has been determined that there are three ways to make the expansion, he said. One is that CEPA does, another is that give AviancaTaca to rent a portion of land to build its own passenger terminal and the third option would throughout the airport concession, including its expansion to a third investor, said.

“These are like the three approaches are used worldwide for this type of infrastructure, and there is no disagreement with the government. We are talking, talking about the possibility of which option they would prefer to be carried out, said Kriete.

“So when I say, I am sure it will do is not arrogance, it’s because I’m sure the government is aware that it has to do. Or they do, or what we do, or does a third party “he reiterated.

Link to Original Article:

From El Salvador

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